Allied Systems Holdings Inc. and 18 subsidiaries, including Allied Automotive Group Inc., Axis Group Inc., and Allied’s Canadian units, on June 10 filed for chapter 11 protection, the Atlanta Business Chronicle reported yesterday. The Decatur, Ga.-based automotive transportation company said that its majority lenders pledged to provide up to $20 million in debtor-in-possession financing to support the company's operations during its voluntary restructuring. Allied Holdings Inc. previously filed for chapter 11 protection in July 2005 and emerged as Allied Systems Holdings Inc. in May 2007. Since then, the company's sales have been hurt by the reduction in vehicle production and sales due to the global economic crisis that began in 2008. Also, the company said that it and its majority lender Yucaipa have been in litigation with certain minority lenders since 2009. Two of those lenders filed involuntary chapter 11 proceedings against Allied on May 17, 2012.
